A memorandum of understanding signed between the Korea Trade-Investment Promotion Agency (KOTRA) and the Investment and Trade Promotion Centre of HCM City (ITPC) to facilitate the exchange of investment and trade information between the two sides. The MoU also aims to boost import and export activities between the two countries.

Pham Thiet Hoa, ITPC's director, said that under the agreement, both sides would cooperate to disseminate information about the free trade agreement between Vietnam and South Korea, and solve obstructions in investment and trade in each other's markets.

KOTRA also signed an MOU with the Saigon High-Tech Park to promote investment of South Korea firms in the hi-tech sector in Vietnam and boost co-operation between Vietnamese and South Korean businesses.

Roh Inho, vice president of KOTRA in charge of ASEAN and Oceania, said that the Vietnam and South Korea FTA, which took effect last December, opened opportunities for Vietnam's key export items, including textile and footwear to enter the South Korean market.

With lower tariff duties under the FTA, South Korean firms will have opportunities to boost exports of raw materials and accessories for the garment and textile sector, household equipment, cosmetics and others.

In order to increase exports to South Korea, Vietnamese firms need to focus more on improving product quality, design and competitive prices.

Park Noh Wan, the South Korean Consul General speaking at the Korea-Vietnam FTA in HCM City, yesterday said that more than 2,500 South Korean firms were operating in HCM City and neighbouring localities.

Besides investment in labour-intensive industries like garment and textile and footwear, many invested in hi-tech sectors like electricity and electronics, contributing to the development of Vietnam's industrial sector.

Nguyen Thi Thu, deputy chairwoman of the HCM City People's Committee, said that the HCM city pledged to create the most favourable conditions for their operations for which the city welcomes foreign companies, including those from South Korea to research investment opportunities in the city.